What Are Commodity Mutual Funds?
People are interested in commodity mutual funds because they are potentially rewarding. These are also ways for them to diversify their investment portfolios aside from the usual bonds and stocks. This is because they are viewed as hedges against inflation. This means that when the prices rise up due to inflation, so do these funds. This movement makes them very appealing to a number of investors. But first, let us discuss what commodities are. Commodities are products that are grown or come from the earth. These are minerals, metals, grain, livestock, sugar, cottons, oils, cocoa, and coffee. The more common commodities that are traded are cattle, wheat, hog bellies and crude oils. Commodities come in the form of future contracts. If you are interested in commodity mutual funds, you need to have an eye on what would sell. You can do this by spotting market trades that are made for immediate delivery. People venture into such funds because they want to have a stable future. With the fut
